Pharma firm says licensing deals to boost profits

RESEARCH company Merrion Pharmaceuticals is confident that licensing deals due to progress in 2011 will see it turn mild recent losses into significant profits.

Merrion yesterday reported losses before taxes of €2.51 million for the year to December 2010, up 55% on 2009. Revenues for 2010 were down 16% to €4.67m. Operating losses were up 31% to €2.35m. Its loss per share was 15c, up 50%.

However, Merrion chief executive John Lynch said that its license agreements with diabetes specialist Novo Nordisk alone could deliver revenues in excess of US$100m (€72m) on the achievement of certain development, regulatory and sales milestones. This is just one of a list of research trials likely to evolve this year.